How to transfer money using a phone number

Send money to a phone number using PayID

PayID is the standard way to pay someone via a mobile number today. Even if your bank offers its own payment feature that allows you to send via a phone number, PayID is easier as it's a standard feature across banks.

PayID allows you to assign your mobile number to your bank account. Then, when someone wants to send you money, they can simply enter your mobile number to do so instead of asking for your account details.

How to use PayID to send money

To send someone money to their phone number using PayID, they'll need to have their phone number registered with the service and linked to their bank account.

1. Open your mobile banking app or log in to Internet banking and select the 'pay someone', 'make a payment' or 'pay' option.
2. Select the payee from your list of recipients, or select 'add a new payee' if you've never sent this person money before.
3. Select the 'Pay with PayID' option and when asked the PayID type select 'Mobile'.
4. Enter the PayID (your recipient's mobile number) and their name should come up as a confirmation you've entered the number correctly. If they don't have a PayID, it won't come up as an option here and you won't be able to send them money this way.
5. Confirm the payment and they'll receive the money almost instantly, even if they're with a different bank.

Our expert says

"If you're not sure whether or not someone has PayID set up, but you do have their mobile number, you can check yourself. Follow the steps to send money via PayID and when prompted enter your recipients' mobile number. If they do have PayID set up, their full name will appear as a confirmation before you send. If they don't have it set up, it won't come up as a transfer option."

Alison Banney

Editorial Manager, Money

Finder survey: What do people use their banking app for?

Finder surveyed over 1,100 Australians about their banking app usage. We found that most Australians use their bank apps to transfer money or pay someone.

Send money using the Pay to Mobile feature

The Pay to Mobile feature lets you send money to the contacts in your smartphone address book, even if they're with a different bank to you. Unlike standard bank transfers, you don't need the payee's bank account details. All you need is the recipient's mobile number.

If you're both with the same bank the transfer is simple and instant. Otherwise, the person you're sending money to will receive an SMS code and instructions on how to claim the payment (this is usually via clicking on a secure link and entering a verification code). For this reason, most people find using PayID easier and more convenient.

Only a limited number of banks still include Pay to Mobile functionality in their mobile banking apps. Of the Big Four banks, CommBank does still offer the feature and ANZ offers it for use between customers only. Westpac no longer offers Pay to Mobile in the latest version of its app, but does have it via online banking.

How to use Pay to Mobile

This will vary slightly between different banks, but the steps to make a payment using Pay to Mobile will generally be as follows:

1. Open your mobile banking app or log in to Internet banking and select the 'pay someone', 'make a payment' or 'pay' option.
2. Select the payee from your list of recipients, or select 'add a new payee' if you've never sent this person money before.
3. Select the 'Pay to Mobile' option and, if they're an existing payee, the money will be transferred instantly.
4. For new payees, you'll need to enter their mobile number and they'll be sent a text message with a secure link and verification code to claim the payment.
5. If they don't claim the payment within 3 business days the transfer will be cancelled and the money will be back in your account.

FAQs on sending money using a phone number

• How do I monitor the status of a mobile payment?

  You can check on the status of a payment you’ve made to a mobile number by logging into your online banking facility or app. It'll show as pending until it's received.

• How is PayID different to Pay to Mobile?

  PayID has largely replaced Pay to Mobile. While it works in a similar way, PayID lets you pay someone with a mobile number, email address, an ABN, a standard phone number or Organisation Identifier.

  Unlike Pay to Mobile, a payment doesn't require a recipient's confirmation if they are with a different bank to you.

• What happens if I enter the wrong mobile number?

  When you make a payment to a mobile number using Pay to Mobile, the transaction status shows "Awaiting Collection" until the payment is received. You can cancel any Pay to Mobile transaction online while the payment is awaiting collection. If the payment has been received, you will need to contact your financial institution to arrange to reverse the transaction.

  If you're using PayID, after you enter the mobile number the person's name will appear as a confirmation before you click send. So if you've entered the wrong number, you'll be able to edit it and confirm before you send.

• Someone has sent me a mobile payment, how do I collect the money?

  If someone has sent a payment to your mobile, you will receive an SMS with the payment code. You’ll need this code as well as your BSB and account number. Enter this information on the website of the bank sending the payment and the funds will be deposited in your bank account. Sometimes there's a secure link sent to you as well which allows you to claim the payment.

• How long do I have to collect a payment?

  Pay to Mobile transactions are valid for up to 3 days. If the money has not been claimed in 3 days, the payment is cancelled.

  If someone sends you money using PayID, it'll be sent instantly and you don't need to do anything to claim it.

Written by

Alison Banney

Editorial Manager, Money

Alison is an editor at Finder and a personal finance journalist with over 10 years of experience, having contributed to major financial institutions and publications such as Westpac, Money Magazine, and Yahoo Finance. She is frequently quoted in media outlets like SmartCompany and SBS, offering expert insights on superannuation and money management. Alison holds a Bachelor of Communications in Public Relations and Journalism from the University of Newcastle, and has earned three ASIC RG146 certifications in superannuation, securities and managed investments and general financial advice, ensuring her expertise is fully aligned with ASIC standards. See full bio

Alison's expertise

Alison has written 630 Finder guides across topics including:

• Superannuation
• Savings accounts, bank accounts and term deposits
• Budgeting and money-saving hacks
• Managing the cost of living